Goldman Sachs plans to soften diversity commitments in its board amid Trump’s efforts to ban DEI: Report
Goldman Sachs is preparing to remove race, gender identity, sexual orientation and other diversity factors from the criteria its board uses to evaluate potential candidates, The Wall Street Journal reported Monday, citing sources.
What’s changing now?
According to the report, the board’s management committee currently selects qualified candidates primarily based on four factors; one is a broad definition of diversity, such as perspectives, background, work, and military service.
This is in addition to “other demographics,” which include a list of diversity, equity, and inclusion (DEI) factors.
Goldman Sachs now plans to cross out “other demographic characteristics,” including race, gender identity, ethnicity and sexual orientation, the sources said. WSJ.
Why change?
according to WSJThe Wall Street giant’s decision followed a behind-the-scenes request from the conservative activist nonprofit National Law and Policy Center, which owns a small stake in the bank.
According to sources, the group submitted a proposal to the company in September to remove DEI criteria.
The group requested that its proposal be included in Goldman’s proxy statement, which will be distributed to shareholders ahead of its annual shareholder meeting this spring. WSJ reported.
Goldman reportedly informed the NLPC that it plans to eliminate DEI criteria. An agreement was also signed between the two parties, which included the activist group withdrawing its proposal.
Goldman’s board is expected to approve the new language this month, the sources said.
Anti-DEI recommendations
Like many major banks, Goldman pulled back from DEI efforts last year.
It retooled its diversity program, One Million Black Women, a multibillion-dollar commitment to invest in Black businesswomen and nonprofit leaders, including removing references to race.
It also ended the requirement for companies in the US and Western Europe to have various boards in order for the bank to go public.
Specifically, U.S. President Trump’s executive order early last year directed federal departments and agencies to launch civil investigations into DEI programs at companies.
Since taking office last year, Trump has launched a broad campaign against diversity, equity, and inclusion (DEI) practices in both government and the private sector, claiming these programs are discriminatory.
